Forex Trading Alert: Time For Recovery

Earlier today, the U.S. Census Bureau showed that factory orders dropped by
3.4% in December, missing expectations for a decline of 2.2%. Thanks to these
numbers, EUR/USD moved sharply higher, breaking above important resistance
levels. Will we see a comeback above 1.1600 in the coming days?

In our opinion, the following forex trading positions are justified - summary:

EUR/USD

The medium-term picture hasn't changed much as and invalidation of the breakdown
below the 61.8% Fibonacci retracement and its positive impact on the exchange
rate are still in effect. Having said that, let's focus on the daily chart.

The first (and the most important) thing that caches the eye on the above
chart is a breakout above the red declining resistance line, the 23.6% Fibonacci
retracement and the upper line of the consolidation (marked with blue).
These are bullish signals that suggest further improvement and an increase
to at least the next resistance zone created by the Jan 22 high and the previously-broken
Nov 2005 low.

Trading position (short-term): Long positions with a stop loss order at 1.1310
are justified from the risk/reward perspective at the moment. However, taking
into account the proximity to the resistance area, we'll likely take profits
in the coming days.

USD/CAD

From today's point of view, we see that USD/CAD dropped below the lower border
of the consolidation (marked with green on the daily hart) and the long-term
blue support line, invalidating earlier breakout. On top of that, all indicators
generated sell signals, supporting the bearish case. These are negative signals,
which suggest further deterioration. How low could the exchange rate go? The
initial downside target will be around 1.2379, where the bottom of the previous
correction is. What if this level is broken? Let's take a closer look at the
weekly hart and find out.

Looking at the above chart, we see that the recent downswing took the pair
below the 88.6% Fibonacci retracement, invalidating earlier breakout above
this level. This is an additional bearish signal that suggests a drop to the
23.6% (around 1.2275) or even 38.2% (at 1.1973) Fibonacci retracement based
on the entire Jun-Jan rally in the coming week.

Trading position (short-term; our opinion): Short positions with a stop loss
order at 1.2645 are justified from the risk/reward perspective at the moment.
However, taking into account the proximity to the support area, we'll likely
take profits in the coming days.

USD/CHF

The situation in the medium-term has't changed much as the exchange rate still
remains above the Mar 2014 lows.

(...) the pair is still trading around yesterday's high and above the
previously-broken 38.2% Fibonacci retracement, which suggests that another
attempt to move higher is likely.

As you see on the daily chart, the situation developed in line with the above-mentioned
scenario and the exchange rate climbed to the orange resistance zone (created
by the 50% Fibonacci retracement and the Oct 2014 low). Earlier today, this
area triggered a pullback, but USD/CHF is still trading between yesterday's
high and low. What's next? In our opinion, as long as there is no breakout
above these levels, higher values of the exchange rate are questionable and
further deterioration can't be ruled out - especially when we factor in sell
signals generated b the indicators.

Przemyslaw Radomski, CFA (PR) is a precious metals investor and analyst who
takes advantage of the emotionality on the markets, and invites you to do
the same.

His company, Sunshine Profits, publishes analytical software that anyone can
use in order to get an accurate and unbiased view on the current situation.

Recognizing that predicting market behavior with 100% accuracy is a problem
that may never be solved, PR has changed the world of trading and investing
by enabling individuals to get easy access to the level of analysis that
was once available only to institutions.

High quality and profitability of analytical tools available at www.SunshineProfits.com are
results of time, thorough research and testing on PR's own capital.

PR believes that the greatest potential is currently in the precious metals
sector. For that reason it is his main point of interest to help you make
the most of that potential.

As a CFA charterholder, Przemyslaw Radomski shares the highest standards for
professional excellence and ethics for the ultimate benefit of society.

Disclaimer: All essays, research and information found above represent
analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates
only. As such, it may prove wrong and be a subject to change without notice.
Opinions and analyses were based on data available to authors of respective
essays at the time of writing. Although the information provided above is
based on careful research and sources that are believed to be accurate, Przemyslaw
Radomski, CFA and his associates do not guarantee the accuracy or thoroughness
of the data or information reported. The opinions published above are neither
an offer nor a recommendation to purchase or sell any securities. Mr. Radomski
is not a Registered Securities Advisor. By reading Przemyslaw Radomski's,
CFA reports you fully agree that he will not be held responsible or liable
for any decisions you make regarding any information provided in these reports.
Investing, trading and speculation in any financial markets may involve high
risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates
as well as members of their families may have a short or long position in
any securities, including those mentioned in any of the reports or essays,
and may make additional purchases and/or sales of those securities without
notice.

Nadia is a private investor and trader, dealing in currencies, commodities
(mainly crude oil), and stocks. Using her background in technical analysis,
she spends countless hours identifying market trends, major support and resistance
zones, breakouts and failures. In her writing, she presents complex ideas with
clarity that enables you to easily understand market changes, and profit on
them. Nadia is the person behind Sunshine
Profits' 3 premium trading services: Forex
Trading Alerts, Oil
Trading Alerts Alerts, and Oil
Investment Updates.

All essays, research and information found above represent analyses and opinions
of Nadia Simmons and Sunshine Profits' associates only. As such, it may prove
wrong and be a subject to change without notice. Opinions and analyses were
based on data available to authors of respective essays at the time of writing.
Although the information provided above is based on careful research and sources
that are believed to be accurate, Nadia Simmons and his associates do not guarantee
the accuracy or thoroughness of the data or information reported. The opinions
published above are neither an offer nor a recommendation to purchase or sell
any securities. Nadia Simmons is not a Registered Securities Advisor. By reading
Nadia Simmons's reports you fully agree that he will not be held responsible
or liable for any decisions you make regarding any information provided in
these reports. Investing, trading and speculation in any financial markets
may involve high risk of loss. Nadia Simmons, Sunshine Profits' employees and
affiliates as well as members of their families may have a short or long position
in any securities, including those mentioned in any of the reports or essays,
and may make additional purchases and/or sales of those securities without
notice.